Commenting on the Chancellor’s Budget speech, Muniya Barua, Deputy Chief Executive of BusinessLDN, said:
“This Budget featured a mixed bag of tricks and treats for the capital’s businesses, offering the promise of higher investment but with firms having to shoulder most of the short-term pain on tax.
“Confirmation that HS2 will go to Euston, changes to the fiscal rules to boost infrastructure spending and her focus on housing are particularly welcome.
“But a hike in employer national insurance contributions will be difficult for many firms to absorb on top of an above-inflation rise in the minimum wage. This may force employers to think again about hiring at a time when London’s labour market is stalling and unemployment in the capital is at a three-year high. The Chancellor also missed an opportunity to boost growth by not scrapping the tourist tax, leaving the UK at a disadvantage when it comes to attracting high-spending international visitors.
“As the UK’s most productive region, which generates a significant tax surplus that supports public services across the country, London has a critical role in delivering the Government’s growth mission.
“The OBR’s lacklustre growth forecasts show much more will need to be done to get the economy out of first gear and unlock London’s full potential. That’s why next year’s spending review must continue to prioritise investment including through a longer-term funding deal for Transport for London, putting the capital’s devolution deal on a par with other trailblazer regions, and providing further public investment to address the city’s housing crisis which is collectively costing its councils £4 million every day.”